Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Export contracts-International Price romissory estoppel-Administrative Law. Reimbursement Scheme (IPRS)- Export Import Policy-Para 190(g)-Unit located at Free Trade Zone (FTZ) obtained export order of engineering goods in 1986 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Export contracts-International Price Reimbursement Scheme (IPRS)- Export Import Policy-Para 190(g)-Unit located at Free Trade Zone (FTZ) obtained export order of engineering goods in 1986-Raw Material of steel procured from domestic sources at prevailing domestic price-Claim for reimbursement of the difference in prices of indigenous steel and imported steel as per the terms of IPRS-Entitlement of-Held: IPRS was extended to units located in FTZ for the first time in 1991 provided it does mt amount to 'deemed export'-Further, supplies of raw materials from Domestic Tariff Area to units in FTZ is 'deemed exports', thus unit cannot claim benefit under IPRS-Furthermore the unit not entitled to invoke promissory estoppel since '- it failed to show that it acted on a representation made by the Government to its detriment-Also the unit failed to produce precise data or any data whatsoever in support of its plea-Promissory estoppel-Administrative Law. Appellants' units are located in the Free Trade Zone (FTZ). It obtained an export order in the year 1986 for construction of two steel bridges in Malaysia. Government of India approved the appellant's project and fabrication of steel bridges at its unit subject to the condition that there should be maximum utilization of indigenous steel as raw material and any import of steel was to be done only after taking approval of the working group. Appellant procured its requirement of steel from domestic sources at the then prevailing domestic prices determined by Joint Plant Committee and fabricated steel bridges at its unit and exported them. Appellant then filed a claim for reimbursement of difference in the price of indigenous steel and imported steel as per the terms of International Price Reimbursement Scheme (IPRS) formulated by Government of India whereby Indian Exporters of engineering goods were to be supplied steel required by them for their export contracts at international price w.e.f. 9.2.1981. Government of India rejected the claim. Appellant filed writ petition. Single Judge of High Court allowed the claim. In appeal, the Division Bench held that the appellant was not entitled to claim the benefit ~ of reimbursement under IPRS as the raw material procured by appellant from domestic sources amounted to 'deemed export'. Hence the present appeal. Appellant company contended that IPRS was introduced by the Government of India to enable the Indian Exporters of engineering goods to compete in the global market; that the appellant's claim for such reimbursement could not be rejected without valid and proper reasons by treating the physical export made by the appellant to Malaysia with the input of raw material of steel procured from domestic sources as a "deemed export"; that the concept of "deemed export" was a legal fiction incorporated in the Import Export Policy with a view to extend the export benefits to the suppliers of indigenous steel to domestic area; that since the supplies made from the DTA were not made at international price, these units will not be entitled to claim import replenishment benefits for such supplies; and that since the appellant had purchased the steel at a higher price from the domestic market at the instance of the Working Group and on the assurance given that he would be reimbursed the difference between the domestic price and the international price, the Government is estopped from denying the benefit of reimbursement of the differential price under IPRS. Respondent-Union of India contended that IPRS was extended to the units situated in FTZ in year 1991 with the rider that IPRS will not be admissible for deemed exports, as such the benefits of IPRS cannot be claimed for export effected in 1985-86; that even on assuming that IPRS was applicable, it is evident from the terms of the Scheme itself that it did not cover contracts for "deemed exports"; and that the appellant is not entitled to invoke the equitable rule of promissory estoppel. |
Judge | Hon'ble Mr. Justice Ashok Bhan |
Neutral Citation | 2005 INSC 38 |
Petitioner | M/s. Larsen & Toubro Ltd. |
Respondent | Union Of India And Ors. |
SCR | [2005] 1 S.C.R. 533 |
Judgement Date | 2005-01-18 |
Case Number | 3025 |
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